The value of international trade transactions settled in renminbi rose 160% in the third quarter from the previous three months to US$19 billion, Bloomberg reported. Although this figure accounted for just 2.4% of Chinese trade during the period, the pace of growth was 10 times faster than that of overall trade. Nokia (NOK.NYSE, NOA3.FWB, NOK1V.OMX), Ikea, McDonald’s (MCD.NYSE) and Metro (MEO.FWB) have all made cross-border transfers in renminbi. “In the past, we have faced problems when there was a sudden movement in the US dollar, which led suppliers to demand additional costs to cover exchange losses,” said Thomas Burkhalter, finance director of Metro’s Hong Kong-based purchasing unit. Mark McCombe, HSBC’s (HBC.NYSE, HSBA.LSE, HSB.Euronext, 0005.HK) Hong Kong CEO, estimates that 20% of China’s international trade could be settled in renminbi within five years. The renminbi has gained 24% against the US dollar in the past six years and 2.2% since Beijing ended a two-year-old de facto peg against the dollar in June.
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